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Technological Progress, Structural Change and Productivity Growth in Manufacturing Sector of South Korea

  • Singh, Lakhwinder

This paper focuses on the impact of technology, structural change on the aggregate productivity growth in manufacturing sector of South Korea, using the eight firm size classes over the period 1970-2000. The conventional shift-share analysis is used to measure the impact of shift of both labor and capital inputs. The results show that structural change on average has been conducive to productivity growth during the 1970s and this pattern reversed afterwards. Small and medium industries were more dynamic in terms of reallocation of resources, however, their positive impact out-weighed because of the dominance of large sized firms in the manufacturing sector. Deliberate state policy favoring large sized firms has impeded restructuring process facilitated by technical progress may have a penalty in terms of forgone growth.

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File URL: https://mpra.ub.uni-muenchen.de/99/1/MPRA_paper_99.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 99.

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Date of creation: 2004
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Publication status: Published in World Review of Science Technology and Sustainable Development No.1.Vol.1(2004): pp. 37-49
Handle: RePEc:pra:mprapa:99
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Web page: https://mpra.ub.uni-muenchen.de

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  1. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
  2. Jan Fagerberg, 2000. "Technological Progress, Structural Change and Productivity Growth: A Comparative Study," Working Papers 5, Centre for Technology, Innovation and Culture, University of Oslo.
  3. Audretsch, David B & Thurik, A R Roy, 2000. "Impeded Industrial Restructuring: The Growth Penalty," CEPR Discussion Papers 2648, C.E.P.R. Discussion Papers.
  4. Syrquin, Moshe, 1988. "Patterns of structural change," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 7, pages 203-273 Elsevier.
  5. Fagerberg, Jan & Verspagen, Bart, 2002. "Technology-gaps, innovation-diffusion and transformation: an evolutionary interpretation," Research Policy, Elsevier, vol. 31(8-9), pages 1291-1304, December.
  6. Timmer, Marcel P. & Szirmai, Adam, 2000. "Productivity growth in Asian manufacturing: the structural bonus hypothesis examined," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 371-392, December.
  7. D.B. Audretsch & M.A. Carree & A.J. van Stel & A.R. Thurik, 2000. "Impeded Industrial Restructuring: The Growth Penalty," Tinbergen Institute Discussion Papers 00-095/3, Tinbergen Institute.
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